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Belmont audit: clean opinion for FY2024, auditors note statutory violations and material weaknesses
Summary
Auditors presented a clean (unmodified) opinion for the city's FY2024 financial statements but disclosed two statutory violations (one finding), two material weaknesses and one significant deficiency; the city must submit corrective responses within 60 days, staff said.
Auditors presented the City of Belmont's FY2024 audit to the council Jan. 6 and issued a clean (unmodified) opinion, the highest available, indicating no material misstatements in the financial statements. Kelly Gham, senior audit manager, summarized key fiscal data and required disclosures.
Highlights reported by the auditor: general‑fund revenues increased by roughly $4.4 million (driven primarily by ad valorem tax collections and a county revaluation); ending general‑fund balance was $22.2 million with an internally calculated available fund balance of $14.1 million; increases in expenditures were driven by public safety and recreation. Water and sewer fund cash flow from operations was positive at about $364,000; net position totals and restricted/unrestricted balances were presented.
Audit disclosures included two statutory violations reported in the footnotes (one resulted in a finding), two material weaknesses (including material audit adjustments and budget‑to‑actual overages in several funds), and one significant deficiency (bonding for the TDA position, per a statutory change). Auditors said corrective actions and responses to the statutory violations and findings are required within 60 days of the presentation.
Finance Director Jared Piles explained the TDA bonding issue was a misinterpretation of a new statutory minimum (bond should be the greater of 10% of the budget or $50,000; the city had applied 10% of the budget resulting in a larger bond amount than required) and described timing issues that led to budget‑to‑actual variances tied to grant revenue recognition; staff said the relevant funds have since received the funding and that corrective action plans are in the audit report.
Council accepted the audit presentation and thanked staff for timely preparation. The auditor encouraged council members to direct any follow‑up questions to audit contacts listed in the packet.
Action: Audit presented; corrective action responses required within 60 days.
